The clumsy tango between Germany and Ireland is severely unnerving the markets, as no one knows exactly who will take the bruises when the tumble comes. Which taxpayers? Which banks? Which shareholders? Which debtholders?

The German government's unwillingness to lead the dance right, left, forward, or back is understandable politically, but until the inevitable losses are allocated it will be perilous to be anywhere near this dancehall.